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(Sharecast News) - Frontier Developments reported a sharp rise in first-half earnings and revenue and upgraded its full-year outlook on Wednesday, after strong sales from new and existing titles.
The AIM-traded games developer said revenue for the six months ended 30 November rose 26% to 59.6m, while adjusted operating profit increased 76% to 9.7m and IFRS operating profit climbed 73% to 7.8m.
Its cash balance at the end of the period rose to 40.1m from 27.2m a year earlier.
The group said the performance was driven by highly positive player response to Jurassic World Evolution 3, alongside continued strength across its creative management simulation portfolio.
Revenue from CMS games increased 52% year on year and accounted for 90% of total group revenue in the period, compared with 75% a year earlier.
Frontier added that December sales after the period ended were particularly strong, delivering its second-highest December revenue on record and a Christmas Day sales record for an individual game.
Planet Zoo became Frontier's highest-grossing individual title by revenue during the half, providing what the company described as a solid foundation for the planned release of a sequel in 2027.
The Planet Coaster franchise also performed slightly ahead of expectations, supported by new content and updates, while Elite Dangerous delivered revenue growth of more than 50% compared with the prior year period.
Development of an unannounced CMS title for 2028 remained on track, and the group's Canadian studio, Complex Games, continued work on an unannounced game scheduled for release in 2027.
On the back of the strong first-half performance and seasonal trading, Frontier upgraded its full-year guidance.
The board said it now expected 2026 revenue of around 100m and adjusted operating profit of around 11m, up from previous expectations.
"I'm incredibly proud of what Frontier has achieved in the first half of 2026 and in recent years," said outgoing chief executive Jonny Watts.
"The success of Jurassic World Evolution 3 and the strength of our CMS portfolio are a testament to the talent and dedication of our team.
"I am delighted that we have successfully restored Frontier to a position of consistent, sustainable growth and profitability.
"Frontier is well placed for the future, and I look forward to supporting Jo and the team through this transition."
Watts formally stepped down as chief executive on 1 January, with former chief marketing officer Jo Cooke assuming the role and joining the board, while Watts would remain an executive director until 31 May to support the handover.
"As we look ahead, Frontier is in an excellent shape to build on the strong foundations established in recent years," Cooke said.
At 1149 GMT, shares in Frontier Developments were up 5.01% at 493p.
Reporting by Josh White for Sharecast.com.